June 28, 2022

Every week-long strike by truck drivers in South Korea has disrupted shipments to China of a key materials used within the manufacturing of semiconductors, the Korean Worldwide Commerce Affiliation (KITA) stated on Tuesday.

It’s the first concrete signal that the week-long strike is impacting the worldwide provide chain of chip manufacturing, having already value South Korean industrial sectors greater than $1.2 billion in misplaced manufacturing and unfilled deliveries.

KITA stated a Korean firm that produces isopropyl alcohol (IPA), a uncooked materials for cleansing chip wafers, is going through problems in delivery to a Chinese language firm that in flip provides wafers to chipmakers.

KITA stated in a press release that about 90 tonnes, or every week’s price of shipments have been delayed.

KITA corrected an earlier assertion saying manufacturing had been disrupted. It clarified that the Chinese language firm doesn’t provide wafers to Samsung Electronics Co Ltd’s chip manufacturing in China.

Samsung Electronics didn’t instantly remark. It produces NAND flash reminiscence chips, used for information storage in information centres, smartphones and different tech devices, at its plant in Xian, China.

The trucker union stated in a press release on Tuesday it can proceed its common strike and condemned the transport ministry for being “neither prepared to speak nor able to resolving the present state of affairs”.

The union is protesting towards hovering gasoline costs and demanding minimal pay ensures. 4 rounds of negotiations with the federal government have did not discover a compromise.

Samsung’s Xian plant had seen manufacturing disrupted earlier this yr attributable to COVID-19 curbs within the Chinese language metropolis, which triggered a world firming of NAND costs.

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The tech large has two manufacturing traces in Xian making superior NAND flash merchandise, which account for about 43% of its complete NAND flash reminiscence manufacturing capability and 15% of the general world output capability, in keeping with TrendForce.

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